Nearly half of winter holiday shoppers plan to shop during pre-season events
Nearly half (44%) of U.S. consumers who plan on shopping during the 2023 winter holiday season say they plan to do so during a pre-season sales event like the upcoming Amazon Prime Day, per new Mintel research.
Holiday shopping staples, Black Friday and Cyber Monday remain popular (45%) as consumers' budget-focused mindset continues. Over a quarter (28%) of winter holiday shoppers agree that it is even more critical to shop on Black Friday or Cyber Monday because of inflation/rising prices. When asked how inflation impacts their spending, 42% of winter holiday shoppers say they purchase fewer gifts, while a quarter (24%) say they switch to lower-priced retailers.
Looking ahead to the end of 2023, Mintel predicts consumers will remain cautious and maintain a budget-conscious mindset as they try to rebound from the financial pressures of the last few years. Three in five (59%) consumers who plan to do winter holiday shopping in 2023 say they want to spend the least amount of money possible. However, consumers will continue to prioritize winter holiday spending and are expected to leave room in their budget for gifting and celebrations as 62% of winter holiday shoppers say they are excited to resume more in-person events and gatherings. In 2023, Mintel predicts that winter holiday sales will grow 5.4% to reach $1.07 trillion.
[Read more: Amazon announces early holiday deals during Prime Big Deal Days]
Brittany Steiger, retail and e-commerce analyst at Mintel, said that while the inflation rate may be cooling from peak highs, consumers are still feeling the squeeze of economic pressures. “In 2022, consumers pulled back on their holiday spending, purchasing fewer gifts and setting spending limits. This year, our research shows that consumers will participate more in pre-season shopping sales, such as Amazon Prime Day, to take advantage of the deals and discounts as they remain value-conscious and look to spend as little as possible,” Steiger said.
Steiger noted that to remain competitive, retailers must position sales and promotions throughout the season and consider personalized deals that are tailored to consumers' preferences.
“Our research shows the most popular retail promotions are percentage-off discounts, BOGO deals, gift card offers and free gifts with purchase. While direct communications and social media will have the farthest reach, partnering with third parties such as shopping portals (e.g. Honey) can be a great way to consolidate deals into one place, making it easier for consumers to shop by deal," she said.
Not all gifts will be new this holiday season. Nearly half (48%) of winter holiday shoppers agree they are open to shopping for pre-owned gifts. This number increases to 68% of consumers ages 18-24 revealing Gen Z consumers are the most likely to shop secondhand this holiday season. The number of consumers planning to shop for the holidays in secondhand retailers grew eight percentage points compared to last year, rising to nearly a quarter (23%) of Gen Zs and Millennials.
[Read more: Target kicks off holiday season with thousands of toys under $25]
"Value is once again taking center stage this holiday shopping season. Discount and secondhand retailers are expected to see continued growth as shoppers look to stretch their dollars farther and look for more affordable ways to shop. Nostalgia and vintage fashion trends have captivated Gen Z, making pre-owned shopping an ideal format for unique, on-trend finds. Additionally, lower-income shoppers are more likely to shop secondhand, looking to pre-owned items as a way to save money. As circular shopping becomes more widespread this holiday season, retailers and brands can embrace the trend by offering their own resale platforms," Steiger said.